Cross-chain Liquidity Protocol
EYWA Cross-chain Liquidity Protocol (EYWA CLP) is the protocol dedicated to provide an ablity for projects to operate cross-chain liquidity despite a development level. These projects that utilize EYWA CLP will be able to deliver their end users a full spectrum of cross-chain trading capabilities fast and conveniently in a single interface via EYWA Cross-chain DEX. We have created an infrastructure composed of several cross-chain liquidity pools that allow the EYWA users to exchange crypto assets of different networks in a decentralized approach.
EYWA CLP is composed of the main instruments such as EYWA Assets, EYWA Token Bridge, Liquidity Aggregator.
Since blockchains are systems isolated from one another, it is technically impossible to directly exchange assets of different blockchains among each other. Currently, the problem of transferring liquidity from one blockchain to another is being solved by using centralized systems that take responsibility for moving user funds. This significantly contradicts the principle of decentralization of the entire DeFi ecosystem and imposes serious risks on users as proved true by multiple hacks of such systems.
The cross-chain pool concept offered by EYWA solves the given problem. This approach allows users to exchange the Blockchain A assets for the Blockchain B assets via the intermediate blockchain in the decentralized and secure manner as described on the scheme below:
The intermediate hubchain Fantom is used for the cross-chain exchange, in which synthetic assets are aggregated and being backed by real assets. Due to the double-layered system of pools, synthetic assets of different networks are collected into the single liquidity pool. It allows to easily exchange them among one another and pull out the cross-chain pool liquidity in any blockchain in a form of the desired asset. At the same time, the synthetic asset is burned and the real asset, that provides it, is unlocked.
In order for operations within the pool to be possible and occur with minimal slippage, the pool must be filled with assets of different networks. Liquidity for the cross-chain pool is provided by the users who contribute their assets to the protocol to conduct operations within the cross-chain pool. In return, the users receive LP-tokens of the cross-chain liquidity pool, which are the EYWA assets.
If you would like to learn more about the cross-chain pool architecture - please visit Cross-chain DEX and Cross-chain Liquidity Protocol sections in EYWA Ecosystem.
The cross-chain liquidity pool filled with stablecoins is used for the exchange of stablecoins in different networks This cross-chain pool is located on the Fantom blockchain and has the following structure:
Ethereum | USDT, USDC, DAI, TUSD |
BNB | USDT, USDC, DAI, TUSD |
Polygon | USDT, USDC, DAI, TUSD |
Fantom | USDT, USDC, DAI, TUSD |
Avalanche | USDT, USDC, DAI, TUSD |
Arbitrum | USDT, USDC, DAI, TUSD |
Optimism | USDT, USDC, DAI, TUSD |
Liquidity providers can send their stablecoins to this pool and receive EUSD stablecoins in return. The holders of EUSD become the liquidity providers for cross-chain exchanges and can convert their EUSD tokens into any of its backed assets.
Last modified 18h ago